Oil prices climb from Monday’s lows but supply worries damp recovery
The financial markets decided that a global trade war wasn’t quite upon us yet this morning. That let stocks and oil bounce back a tad. But it also gave oil traders room to start worrying about oil supply again–after they spent Monday worrying that a global trade war would lead to a collapse in demand.
Trick or trend: Want to know where oil prices are headed? Look to Singapore
Will OPEC really keep pumping less oil than it could in an effort to clear the global surplus in crude and to support prices above $50 a barrel and maybe push oil back to $60 a barrel? The annual confab of oil traders this week in Singapore is likely to tell.
Here we go again: Oil supply and demand “near” to balancing
If you think you’ve heard this before, you’re absolutely right. Nonetheless, oil rallied today on a forecast from the International Energy Agency that oil stockpiles in developed countries could hit or fall below their five-year average “very soon.” West Texas Intermediate, the U.S. crude benchmark, closed up 2.2% to $49.30 a barrel. That brings us back near to the $50 level that has defined the top of the range in oil prices for much of 2017. (The high for West Texas Intermediate in 2017 is $54.45 a barrel back on February 23.)Â
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